16 March - 24 April 2020

Our online festival is underway with a packed programme of interviews and panels. Featuring talks from the industry’s biggest brands and most innovative individuals, this event explores what digital transformation really means for marketing.

Coming Up
10 Apr 10:00 BST / 05:00 EST

Talk to me: voice technology, are we there yet?

Hamish McPharlin
Head of Insight at BBC Global News
Sophie Hind
Managing Director at Voiceworks
Imogen Watson
Journalist at The Drum

Netflix is set to gain more investors after announcing it will split its stock

Netflix is pressing ahead with its ambitious international expansion by splitting its stock to make it more attractive to retail investors.

The 7-for-1 stock split will mean investors will receive seven shares for each one they own. When the split occurs on July 14, Netflix’s stock will fall sharply to account for the extra shares, however the company’s market value, which stands at around $41 billion, won’t be affected.

The move is designed to make Netflix’s shares, which currently cost $680 a share, more accessible to a wider range of investors. Shares have been among the market's most valuable and have nearly doubled since the beginning of the year, surging to a record $703.50.

The change will put the California-based company’s shares within a similar price range to those of Facebook and follows expectations of a split following a vote among shareholders two weeks ago to increase the number of outstanding shares.

While the specific 7-for-1 split is unusual, Netflix shareholders would have taken confidence in the fact that Apple did the same last year and has enjoyed a stock surge of 37 per cent since then. Over the last two and a half years Netflix has gained an additional 29 million subscribers and now boasts a total of 60 million worldwide.

The split announcement will pave the way for the massive expansion operations planned for next year which will see the online streaming service available in 200 countries.

Join us, it's free.

Become a member to get access to:

  • Exclusive Content
  • Daily and specialised newsletters
  • Research and analysis

Join us, it’s free.

Want to read this article and others just like it? All you need to do is become a member of The Drum. Basic membership is quick, free and you will be able to receive daily news updates.